How to Set Prices

Owing to the poor performance of traditional methods, more and more companies are discovering the importance of having a professional approach to pricing strategies.

Monday, September 26, 2011

Ariel Baños, economist and author of " Los secretos de los precios” (The Secrets of prices), writes in

"’Why worry about prices, if ultimately everything depends on the market? It is better to allocate resources towards reducing costs and increasing sales, which are actions within our grasp and have a direct impact on the outcome.’ This is how a CEO of a major company justifies the neglected place that pricing strategies hold within their organization.

This argument is representative of the views of many companies. There is widespread ignorance about the benefits and tools available to strategically manage prices.”
Baños cites the following 5 reasons why companies should not ignore this issue:
1 - Price is the variable which has the greatest impact on results
2 – It is possible to actively manage prices
3 - Price wars do not end in winners and losers
4 - More sales do not always mean higher profits
5 - Organization and processes are key to managing prices

Read the full article, in Spanish, in

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Only a few companies are aware of the true impact of a proper strategy and price management on the profitability of the organization.

Ariel Baños, pricing specialist and founder of, explains why it is critical for organizations to control the variable with the most impact on their results, and details the five reasons for implementing a pricing area in companies:

Prices: The Myth of the Ideal Margin

August 2018

The search for the ideal margin is an aim that keeps a lot of business owners up late at night, but this kind of reasoning does not always help them be more profitable.

In general, those who ask themselves what price they should set for their product, start from an incorrect premise: using the cost as a starting point. 

What Price Should You Sell Your Company For?

July 2012

Price is a variable that firms can and must act on, because the impact of the outcome greatly exceeds traditional variables like costs or sales volumes.

5 immediate actions to take control of the price of your business

By Ariel Bathrooms, economist. Author of " Los secretos de los precios” (Secrets of prices)

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